A class-action lawsuit brought upon Uber by its drivers in California and Massachusetts will conclude in a settlement which may total $100 million (R1.4+ billion).
The settlement, which is awaiting approval from a judge, will allow Uber to classify its driver partners as independent, but will make changes to working conditions according to The Guardian.
“The forward-looking non-monetary component of the settlement is significant and includes numerous changes to Uber’s business practices, which will provide drivers with greater transparency, a way to seek redress from Uber, and greater bargaining power in the event of future disputes,” an excerpt from the settlement reads.
Drivers will also no longer be deactivated without two prior warnings from the firm, according to the settlement.
As to the monetary part of the settlement, the ride-sharing app will pay out $84 million to drivers upon approval. The remaining $16 million will only be paid out if Uber goes public and the company’s value increases by one and a half times its original $62.5 billion valuation within a year of going public.
The guaranteed $84 million will be dispersed among drivers according to the number of miles the driver has completed with a passenger.
The ride-sharing app has also agreed to create a Driver Association which will be comprised of drivers who will meet with Uber quarterly to address concerns of drivers.
While many laud over the ride sharing app drivers around the world appear to be growing increasingly disgruntled with the service.
Uber driver partners in Cape Town recently went on strike when the app announced that fares would be decreased from R7 per kilometre to R6 per kilometre in the same week that the petrol price increased. Drivers believed that this would cut into their earnings to which Uber responded by saying it would guarantee the earnings of partner drivers if they dropped.[Via – The Guardian]